Rathbones Group: Regulatory review announced into Wealth Management business

研报英文原文证据摘录

Rathbones Group: Regulatory review announced into Wealth Management business

Accessible version

Rathbones Group

Regulatory review announced into Wealth

Management business

Reiterate Rating: BUY | PO: 2,600 GBp | Price: 1,952 GBp

Breaking News 16 June 2026

Equity• RAT to undertake WM business review with areas of improvement relating to

Consumer Duty, compliance, oversight & assurance. Christiane Holstein >>

Research Analyst

• Review to take 2 years and see non-underlying cost of £60m. Change in pricing for MLI (UK)

cash has £9m underlying PBT impact in 2026. +44 20 7996 1011 christiane.holstein@bofa.com

• EDD client activity paused (c4% clients, c8% gross inflows). EDD client and bus Hubert Lam >>

disruption expected to delay flow recovery. Research Analyst

MLI (UK)

+44 20 7996 7112

hubert.lam@bofa.com

Rathbones undertaking review with the FCA Conor Callaghan >>

Rathbones (RAT) announced a review into their WM business following engagement with Research Analyst

the FCA. Areas of improvement relating to Consumer Duty have been identified, as well +44 20 7996 1562

as aspects of its compliance, oversight and assurance arrangements. The review will be conor.callaghan@bofa.com

completed over 2-years and will ensure that good client outcomes have been received. In

addition, management will pause the onboarding of new clients requiring EDD for up to

12 months, as well as the acceptance of inflows from existing EDD clients (~4% of Stock Data

clients) which will be resumed as soon as practicable. Management expect the review

will incur a non-underlying cost of £60m over the 2-years, net of expected insurance Price 1,952 GBp

recoveries. We expect this would drive a ~12-15% pa decline to our PBT in 2026 and Price Objective 2,600 GBp

2027.